AT&T has informed federal regulators that it will phase out its diversity, equity and inclusion programs as companies across the country grapple with their place in a world in which neutrality is not neutral.
In a filing to the FCC, the company said that the legal environment for corporate diversity, equity and inclusion had changed and that it would abolish roles, employee resource groups and programs related to its DEI policy. AT&T stressed that it continues to stand by equal employment opportunity and nondiscrimination, casting its about-face as a return to “merit-based” hiring even as it awaits agency action on the multibillion-dollar spectrum purchase that originated in 2014.
What AT&T told regulators about ending DEI programs
The carrier told the FCC it has ceased DEI-flagged positions and programming outside of those specifically identified as participating in DEI-related functions, as well as removed internal and external references that may be perceived as preferential or targeted. The company explained the change as an adjustment in response to changing case law and compliance expectations, adding that its primary equal employment and anti-discrimination provisions continue to adhere to federal and state statutes enforced by the Equal Employment Opportunity Commission.
The filing did not describe a timeline for untangling employee groups or training modules, but implied a wide-ranging reset extended to governance, HR policies and communications. That breadth is important: In previous corporate restructurings, companies have learned that alterations to resource groups and mentorship pipelines can reverberate into recruiting, retention and leadership succession in a matter of years after performance reviews.
The regulatory backdrop shaping AT&T’s pending spectrum review
AT&T’s decision comes as big telecommunications deals are facing increased scrutiny. Spectrum transfers are subject to an FCC public-interest test, and agencies can scrutinize the governance of applicants, their track records on compliance and any consumer repercussions. There is no requirement under communications law for companies to have such corporate DEI programs, but the timing of AT&T’s disclosure highlights how firms weigh their risk posture as they undergo sensitive reviews.
Industry observers say that rivals have been forced to look again at public-facing language on inclusion and hiring incentives since new negotiations with regulators. More broadly, corporate legal departments are responding to a wave of litigation challenging race- or gender-conscious policies and benefits, as well as state-level curbs on DEI training and spending. That reassessment has been further propelled by U.S. Supreme Court rulings that have rewritten the rulebook on what role race can play in institutional decision-making and well-publicized suits brought by organizations such as the American Alliance for Equal Rights.
For the carriers, there is a lot at stake with any delay caused by regulation. Hold-ups to midband spectrum can slow 5G rollout, increase capex and weaken competitive positioning in enterprise and fixed-wireless markets. Analysts at research firms focused on the sector have routinely made a connection between spectrum clarity and network performance metrics that influence ARPU and churn.
What it means for workers and customers of AT&T
Workforce diversity has been independently linked to business results. McKinsey’s multiyear study found that companies in the top quartile for ethnic diversity were 36 percent more likely to outperform on profitability, and gender-diverse leadership teams also had a significant performance edge. While correlation is not causation, these findings have underpinned investor and board enthusiasm for race and gender inclusion strategies across the Fortune 500.
For years, AT&T has cast itself as a player in digital divide bridging with investments that include fiber expansion and service offerings aimed at underserved communities. Consumer advocates will be paying attention to see if the elimination of formal DEI programs as part of broader cost-cutting changes the relationships with the community, supplier diversity and internal pipelines that help bring local talent into network buildouts — especially as states dish out funding for broadband deployment and carriers jostle for engineering talent.
Employee sentiment is another variable. Pew Research Center has tracked widening partisan and demographic divides on DEI at work, and companies that made U-turns have faced attrition among early-career and underrepresented employees. Leadership communications that directly differentiate compliance changes from the broader culture and opportunity commitments can make a difference in retention.
What comes next for AT&T amid the FCC spectrum review
Attention now turns to the FCC’s timing for the spectrum transfer and any subsequent conditions. AT&T will also have to revise policy, workforce and supplier reportage companywide, from EEO filings to procurement disclosures. Instead, labor groups and civil-rights organizations are likely to judge outcomes — hiring patterns, promotion rates, pay equity — and not just statements, in keeping with what has happened at other big companies pushing back diversity efforts.
For the wider telecom industry, AT&T’s move establishes a new benchmark: take precautions against legal risk over putting through brand-suggested inclusion efforts during high-stakes regulatory proceedings. Whether that turns into quantifiable operational benefits — or reputational liabilities — will generally become more evident when spectrum decisions are made and employee and customer data rolls in over the next few quarters.